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Find the inverse demand curve

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Reference no: EM132140766

1. The demand for good X is given by: QXd = 6,000 - ½ PX - PY + 9PZ + 1/10M Research shows that the prices of related goods are given by PY = $6,500 and PZ = $100, while the average income of the individuals consuming this product is M = $70,000.

a. Indicate whether goods Y and Z are substitutes or complements for good X.

b. Is X an inferior good or normal good?

c. How many units of good X will be purchased when PX = $5,230?

d. Determine the demand function and inverse demand function for good X. Graph the demand curve for good X.

2. The demand curve for product x is given by QXd= 300 - 2PX

a.) Find the inverse demand curve.

b.) How much consumer surplus do consumers receive when PX=$45?

c.) How much consumer surplus do consumers receive when PX=$30?

d.) In general, to the level of consumer surplus as the price as the price of a good falls?

Reference no: EM132140766

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